Brazil’s Petrobras has received an additional five years to conclude exploration activities on Block BM-ES-21 in the offshore portion of the Espirito Santo basin and file a declaration of commerciality for its Malombe discovery.

Petrobras and project partner Repsol Sinopec made the Malombe natural gas find in November 2011, encountering dry gas in Oligocene turbidite sandstones with 28% porosity at a depth of about 2600 metres.

Two appraisal wells, Magadi and Tanganika, also unlocked gas accumulations in the area now called Park of the Lakes. Petrobras has already mapped other prospects in BM-ES-21 such as Sulunga, Manyara, Malawi, Eyasi and Awasa, all of which were named after some of the largest freshwater lakes in East Africa, but the oil giant has yet to commit to new drilling in the area.

Nevertheless, Brazilian market regulator ANP agreed to extend the BM-ES-21 exploration period until November 2022, while at the same time discharging Petrobras from acquiring a new 3D seismic survey on the block.

The additional time for Malombe was given just a couple of weeks after the agency also granted Norway’s Statoil an extra five years to complete studies in Block BM-C-33, home of the giant Pao de Acucar oil and gas discovery.

Both Malombe and Pao de Acucar would be best developed if the companies were able to monetise the produced gas under new legislation under review in the Brazilian Congress that would open the market for free competition.

Also in the Espirito Santo basin, the ANP has ruled that Statoil must decide by mid-July if it will proceed with the development of the Dende gas discovery in Block BM-ES-40. If Statoil opts to move forward, the company will have to drill an appraisal well and run a drillstem test, depending on the results of the probe, by October 2018.

In the case of a positive outcome, Statoil could choose to start a third phase at BM-ES-40 by drilling another appraisal and conducting an extra drill stem test by December 2019, when it will have to file the Dende declaration of commerciality.

Statoil operates BM-ES-40 with a 50% stake, and is partnered by private French independent Perenco holding the other half.

Weekly

Petrobras gets more time in Espirito Santo basin